Spain prepares to expand bullion coin offerings for investors – news
The Spanish government has approved resources for a new issuance of bullion coins aimed at meeting higher estimated demand for these instruments. The Spanish National Mint Factory will purchase 40 million euros worth of high quality gold pieces for this batch, a significantly higher amount of gold compared to the two previously issued series.
Spanish National Mint Factory prepares to issue gold bullion coins
Spain is preparing to issue a new bullion coin to meet market demand for such instruments. In February, the Spanish government approved a 40 million euro (nearly $43 million) budget for the issuance of a new batch of gold coins. Most of the budget is used by the National Coin Factory to purchase high-purity, high-grade gold to mint these coins.
According to reports, the sum approved for this task is unusually high, indicating the demand that the institution estimates when issuing the products. Analysts speculate that this type of product, traditionally marketed to national and international collectors, may have attracted interest from more traditional investors due to the measured risks and low volatility associated with gold and the coins themselves.
Gold demand sees boost in Spain
This is the third issue of gold bullion coins that the National Mint Factory in Spain is preparing to execute, profiling itself as the largest in terms of the amount of gold purchased. The other two batches were issued in 2021 and 2022 with counts of 12,000 and 15,000 minted units, respectively.
In comparison, the approved budget for these first two issues did not reach the €10 million mark (nearly $10.7 million). The coins, which are sold directly by the National Coin Factory, have a uniform price. The price depends on the price of gold at the time of purchase and the coin fee charged by the National Coin Factory, which is 10%.
The increasing demand for gold-based investment vehicles is not just a local phenomenon. According to the World Gold Council, a market insights organization, demand for the precious metal hit an 11-year high in 2022. While most of this volume was due to an increase in central bank purchases, the institution also reported that investment demand for gold rose 10% to reach 1,107 tons.
What do you think of the recently approved budget for minting gold bullion coins in Spain? Tell us in the comment section below.
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